Roku delivered its Q4 2018 results on Thursday of this week. The company had an outstanding year and is emblematic of growth in connected TV viewing and the emergence of ad-supported premium video online.

Chapter 1: Ad revenue leads growth at Roku (0:46)

The company delivered a 40% growth in revenue in 2018. In the past, the company’s growth came from player sales. Now Roku’s platform business is the primary driver, with advertising sales comprising the most prominent portion. The success of The Roku Channel is the main reason for the rapid ascent of platform revenue at Roku.

The number of active Roku users increased by 40% in 2018 to reach 27.1 million. The increase illustrates that Roku players are still selling well. However, it is more interesting to Roku because it boosts the number of people watching The Roku Channel. The increase led to a 30% increase in average revenue per unit over the year.

Chapter 3: People are watching longer (3:42)

The most spectacular growth for Roku in 2018 comes from the hours of media streamed. It increased by 69% for the year to reach 7.3 billion hours. People are watching for 30 minutes longer in Q4 2018 than they did in Q4 2017.

Chapter 4: Roku performance reflects the market transition (4:42)

The performance of Roku exemplifies two significant trends in the market: